EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

Basic earnings per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reportable period. The diluted earnings per share calculation adds to the weighted average number of common shares outstanding: the incremental shares that would have been outstanding assuming the exercise of dilutive stock options, the vesting of unvested restricted shares of common stock, restricted stock units and performance units. An antidilutive impact is an increase in earnings per share or a reduction in net loss per share resulting from the conversion, exercise or contingent issuance of certain securities.

During the three months ended September 30, 2022, the Company repurchased approximately 10.8 million shares of its outstanding common stock per a share repurchase program at an average price of $7.41 per share for a total cost of approximately $80 million. During the nine months ended September 30, 2022, the Company repurchased approximately 13.6 million shares at an average price of $7.35 per share for a total cost of approximately $100 million.

On December 31, 2021, the Company issued 99,337,748 shares of its common stock in conjunction with the GEPH Merger. These shares of Southwestern common stock had an aggregate dollar value equal to approximately $463 million, based on the closing price of $4.66 per share of Southwestern common stock on the NYSE on December 31, 2021. See Note 2 for additional details on the GEPH Merger.

In September 2021, the Company issued 337,827,171 shares of its common stock in conjunction with the Indigo Merger. These shares of Southwestern common stock had an aggregate dollar value equal to approximately $1,588 million, based on the closing price of $4.70 per share of Southwestern common stock on the NYSE on September 1, 2021. See Note 2 for additional details on the Indigo Merger.

The following table presents the computation of earnings per share for the three and nine months ended September 30, 2022 and 2021:


	For the three months ended September 30,				For the nine months ended September 30,
(in millions, except share/per share amounts)	2022		2021		2022		2021
Net income (loss)	$	450	$	(1,857)	$	(1,052)	$	(2,386)

Number of common shares:
Weighted average outstanding	1,110,259,907		787,032,414		1,113,705,502		713,455,662
Issued upon assumed exercise of outstanding stock options	—		—		—		—
Effect of issuance of non-vested restricted common stock	796,253		—		—		—
Effect of issuance of non-vested restricted units	1,466,701		—		—		—
Effect of issuance of non-vested performance units	—		—		—		—
Weighted average and potential dilutive outstanding	1,112,522,861		787,032,414		1,113,705,502		713,455,662

Earnings (loss) per common share
Basic	$	0.41	$	(2.36)	$	(0.94)	$	(3.34)
Diluted	$	0.40	$	(2.36)	$	(0.94)	$	(3.34)

The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2022 and 2021, as they would have had an antidilutive effect:


	For the three months ended September 30,		For the nine months ended September 30,
	2022	2021	2022	2021
Unexercised stock options	1,961,128	3,699,448	2,467,127	3,742,486
Unvested restricted common stock	—	762,945	810,025	827,279
Restricted units	790,182	3,434,189	1,503,049	3,509,603
Performance units	—	2,251,254	474,093	2,196,073
Total	2,751,310	10,147,836	5,254,294	10,275,441